Citi Recommends Buying Undervalued Oracle Stock Amid Volatility
Oracle (ORCL) has experienced a significant decline in its stock price, down about 23% year-to-date and more than 56% from its record high. Citi analyst Tyler Radke reiterated a Buy rating with a $330 price target for Oracle on August 26, suggesting the worst may already be priced into the stock. Radke argues that Oracle's sell-off was driven by mechanical factors rather than fundamental issues in the business. He cited panic selling and technical pressures such as credit spread widening, aggressive share issuance, and sentiment-driven forced selling. These forces are now expected to ease, potentially allowing the stock to reflect its underlying fundamentals again. Oracle’s financials show a strong backlog of $638 billion in remaining performance obligations and 93% year-over-year growth in cloud infrastructure revenue. However, rising liabilities and negative free cash flow due to heavy data center investments remain concerns.
Topics: buy recommendation Citi Oracle price target